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African Development Bank Approves $600M Loan for Nigeria

  • Associated Press

FILE - Nigerian naira notes are seen in this photo illustration. Nigeria is struggling through its first recession in 20 years.

FILE - Nigerian naira notes are seen in this photo illustration. Nigeria is struggling through its first recession in 20 years.

The African Development Bank said Wednesday that it was loaning Nigeria $600 million to help with a budget deficit of $7 billion.

A bank statement Wednesday said another $400 million would be approved next year if the government implemented reforms to economize on government costs, combat corruption and promote diversification in Africa's biggest economy.

Nigeria is struggling through its first recession in 20 years, caused by low oil prices, militant attacks that have cut petroleum production, and a heavy dependence on oil that provides 90 percent of exports and 70 percent of government revenue.

Nigeria had requested the loan in February. It has failed to raise another $4 billion to plug the deficit.

Nigeria's Senate refused Tuesday to consider President Muhammadu Buhari's request to seek $30 billion in foreign loans.

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